The Clothesource Guide to Apparel Trade Regulations 2014. (1 Edition)
Report description
This survey summarises in a user-friendly way the concessions to apparel manufacturers offered by the major developed world trading countries (the EU, US, Japan, Canada and Australia) as of March 31, 2013. It looks at their effect and their commercial significance, and outlines the decisions the major Western countries will take to modify these concessions up to the end of 2016.
Most of those decisions are in a state of flux. A similar review published six months later will almost certainly arrive at different conclusions.
The world of apparel sourcing has gone through huge changes, many driven by changes in the laws governing cross-border trade, since the 1990s. In early 2013, a large number of proposals emerged from the major trading nations that could create even greater changes.
China, the US, the EU, Japan, India, Korea and the South East Asian nations have all announced wide-ranging plans for free trade areas, mostly with each other. While he plans offer limited scope for dramatic reductions in the landed prices of imported garments, they raise possibly more financially rewarding prospects of widespread efficiencies through simpler sourcing, range standardisation and more consistent worldwide compliance harmonisation than the industry has ever seen. The plans all require complicated negotiations – not necessarily productive - with prospective partners, and raise the risk of a great deal of effort being spent by negotiators and trade lobbyists to little purpose.
At the same time, a growing number of developing countries have been erecting barriers against imports from other developing countries, and more and more countries are filing legal objections to Chinese trading policies – which might force China to change some of its practices.
There is clear evidence of “trade concession fatigue” among rich-country politicians and plans to cut eligibility for EU and Canadian concessions, which will remove trade concessions from countries like Brazil and Russia altogether.
This Guide is intended to provide a readable but authoritative account of:
- Current and planned Customs arrangements between major garment buying nations and countries supplying them
- The effect of current arrangements on relative competitiveness
- The real prospects for implementation of those plans announced
Most of those decisions are in a state of flux. A similar review published six months later will almost certainly arrive at different conclusions.
The world of apparel sourcing has gone through huge changes, many driven by changes in the laws governing cross-border trade, since the 1990s. In early 2013, a large number of proposals emerged from the major trading nations that could create even greater changes.
China, the US, the EU, Japan, India, Korea and the South East Asian nations have all announced wide-ranging plans for free trade areas, mostly with each other. While he plans offer limited scope for dramatic reductions in the landed prices of imported garments, they raise possibly more financially rewarding prospects of widespread efficiencies through simpler sourcing, range standardisation and more consistent worldwide compliance harmonisation than the industry has ever seen. The plans all require complicated negotiations – not necessarily productive - with prospective partners, and raise the risk of a great deal of effort being spent by negotiators and trade lobbyists to little purpose.
At the same time, a growing number of developing countries have been erecting barriers against imports from other developing countries, and more and more countries are filing legal objections to Chinese trading policies – which might force China to change some of its practices.
There is clear evidence of “trade concession fatigue” among rich-country politicians and plans to cut eligibility for EU and Canadian concessions, which will remove trade concessions from countries like Brazil and Russia altogether.
This Guide is intended to provide a readable but authoritative account of:
- Current and planned Customs arrangements between major garment buying nations and countries supplying them
- The effect of current arrangements on relative competitiveness
- The real prospects for implementation of those plans announced
Table of contents
Introduction
1. Keeping abreast
2. Our objectives
3. Countries featured
4. How to use this Guide
5. A caution
1. The Basic Principles
1. General Philosophies: How laws are made
1.1.1 Influences
1.1.2. Role of legislators
2. What rules cover
3. Rules and the World Trade Organisation
4. The effect of Rules of Origin (ROO)
5. For poorer countries
6. Programmes offering reduced duty
1.6.1 Using country -specific preference programmes
1.6.2 Using home-country raw materials
1.6.3 Special cases for more concessions
2. The major incentives and barriers:
3.1 Countries with exceptional duty free access
3.1.1 Near-universal duty free access
3.1.2 Other Double barrelled Duty Free Concessions
3.2 General access to the US
3.2.1 Duty free: no significant restriction
3.2.2 Duty free- raw material restrictions
3.2.3 Trade concessions
3.2.4 Trade barriers
3.3 General access to the EU
3.3.1 Duty free no significant restriction
3.3.2 Duty free: Raw material restrictions
3.3.3 Trade Concessions
3.3.4 Trade Barriers
3.4 General access to other major importers
3.4.1 Access to Japan
3.4.2 Access to Canada
3.4.3 Access to Australia
3.4.4 Access to EFTA
3.4.5 Access to Korea
4. Producer-Countries: Summary of current options
5. Likely changes: 2012-2015
5.1 The effect of the recession on countries’ appetites for trade deals
5.2 Major new agreements currently under negotiation
5.2.1 US
5.2.2 EU
5.2.3 China
5.2.4 The Association of South East Asian Nations
5.2.5 Japan
5.2.6 Canada
5.2.7 Australia
5.3 Other proposed changes to trade deals
5.3.1 Lapsing agreements
5.3.2 Proposed new agreements
5.3.3 Lobbies to reign in agreements
5.3.4 Legal cases to impose new interpretations of agreements
5.4 Summary of new agreements’ potential benefits
5.5 Summary of major negotiations and changes to existing agreements
5.6 Climate for proposed changes and renewals of current agreements
5.7 Proposed new arrangements: our judgement
5.7.1 TPP
5.7.2 EU FTAs
5.7.3 China
5.7.4 ASEAN
5.7.5 Japan, Australia, Canada and Korea
5.7.6 US other pressures
5.7.7 EU other pressures
6. Country-specific trade barriers and trade preference agreements
a. US Agreements
6.1.1 Haiti
6.1.2 Low-income Africa
6.1.3 Higher income Africa
6.1.4 Andean Countries
6.1.5 Caribbean countries
6.1.6 Central America
6.1.7 Free Trade Agreements
6.1.9 Israel
6.1.10 Jordan and Egypt
6.1.11 Mexico and Canada
6.1.12 Other developing countries
b. EU Agreements
6.2.1 Countries with unrestricted duty free access
6.2.2 Other poor country duty free access
6.2.3 EU members
6.2.4 EU’s rich neighbours
6.2.5 Euromed Countries
6.2.7 Other developing countries
6.2.8 Duty free for other developing countries
6.2.9 Individual Free Trade Agreements
6.2.10 Korea
6 .3 Japan
6.3.1 LDC Rate
6.3.2 ASEAN Rate
6.3.3.Japan-India
6.4 Canada
6.4.1 LDCs
5.4.2 Free Trade Agreements
6.5 Australia
5.5.1 LDC Rate
5.5.2 ASEAN rate
6.6 Summary of top hundred exporting countries
Appendix 1. Tariff and Preference Summaries
Tariff sources
Appendix 2: Memberships
Memberships 1: World Trade Organisation
Memberships 2: Trading blocs
EU
Association of South East Asian Nations (ASEAN)
Mercosur
Memberships 3: Generalised System of Preferences
Appendix 2: EU Rules of Origin
Chapter 61
Chapter 62
Appendix 3: Rules allowing discrimination against China
Tables
Table 1 Countries covered
Table 2 Current best deals
Table 3 Exporting countries with significant concessions
Table 4 Countries with origin-blind duty-free access to US
Table 5 Countries with restricted duty-free access to US
Table 6 Countries with other concessions for US access
Table 7 Countries with unrestricted duty free access to EU
Table 8 Countries with restricted duty free access to EU
Table 9 Duty rates and programmes for each producer country
Table 10 Likely new arrangements 2013-2015
Table 11 HELP, HOPE, and CPTDEA
Table 12 America’s AGOA: Full Beneficiaries of the African Growth and Opportunity Act
Table 13 America’s AGOA: African Growth and Opportunity Act Partial
Table 14 America’s ATPDEA (Andean Trade Promotion and Drug Eradication Act)
Table 15 America’s CBTPA: Caribbean Basin Trade Partnership Act
Table 16 America’s DR-CAFTA: Central America/Dominican Republic FTA
Table 17 US Free Trade Agreements ratified as of September 30, 2012
Table 18 US-Israel Free Trade Agreement
Table 19 America’s QIZ Programme: Qualified Investment Zone facilities in Jordan and Egypt
Table 20 NAFTA: North American Free Trade Area
Table 21 US and the General System of Preference (GSP)
Table 22 EU Economic Partnership Agreements
Table 23 Full EU membership
Table 24 European Free Trade Area
Table 25 Euromed
Table 26 The EU and the General System of Preference (GSP)
Table 27 The EU’s GSP+ programme
Table 28 EU- Chile Agreement
Table 29 EU-Mexico Agreement
Table 30 EU-South Africa agreement
Table 31 EU and Korea
Table 32 EU and Colombia
Table 33 Japan-LDC rates
Table 34 Japan-ASEAN rates
Table 35 Japan- India FTA
Table 36 Canada-LDC rates
Table 37 Canada FTAs
Table 38 Australia-LDC rates
Table 39 Australia-ASEAN rates
Table 40 Top hundred exporting countries: concession summary
Table 41 Sources of national tariffs
Table 42 Countries in the WTO
Table 43 EU Members: January 1 2013
Table 44 ASEAN members
Table 45 Mercosur members
Table 46 Countries qualifying for garment GSP/GPT rates: 2012 and 2014
1. Keeping abreast
2. Our objectives
3. Countries featured
4. How to use this Guide
5. A caution
1. The Basic Principles
1. General Philosophies: How laws are made
1.1.1 Influences
1.1.2. Role of legislators
2. What rules cover
3. Rules and the World Trade Organisation
4. The effect of Rules of Origin (ROO)
5. For poorer countries
6. Programmes offering reduced duty
1.6.1 Using country -specific preference programmes
1.6.2 Using home-country raw materials
1.6.3 Special cases for more concessions
2. The major incentives and barriers:
3.1 Countries with exceptional duty free access
3.1.1 Near-universal duty free access
3.1.2 Other Double barrelled Duty Free Concessions
3.2 General access to the US
3.2.1 Duty free: no significant restriction
3.2.2 Duty free- raw material restrictions
3.2.3 Trade concessions
3.2.4 Trade barriers
3.3 General access to the EU
3.3.1 Duty free no significant restriction
3.3.2 Duty free: Raw material restrictions
3.3.3 Trade Concessions
3.3.4 Trade Barriers
3.4 General access to other major importers
3.4.1 Access to Japan
3.4.2 Access to Canada
3.4.3 Access to Australia
3.4.4 Access to EFTA
3.4.5 Access to Korea
4. Producer-Countries: Summary of current options
5. Likely changes: 2012-2015
5.1 The effect of the recession on countries’ appetites for trade deals
5.2 Major new agreements currently under negotiation
5.2.1 US
5.2.2 EU
5.2.3 China
5.2.4 The Association of South East Asian Nations
5.2.5 Japan
5.2.6 Canada
5.2.7 Australia
5.3 Other proposed changes to trade deals
5.3.1 Lapsing agreements
5.3.2 Proposed new agreements
5.3.3 Lobbies to reign in agreements
5.3.4 Legal cases to impose new interpretations of agreements
5.4 Summary of new agreements’ potential benefits
5.5 Summary of major negotiations and changes to existing agreements
5.6 Climate for proposed changes and renewals of current agreements
5.7 Proposed new arrangements: our judgement
5.7.1 TPP
5.7.2 EU FTAs
5.7.3 China
5.7.4 ASEAN
5.7.5 Japan, Australia, Canada and Korea
5.7.6 US other pressures
5.7.7 EU other pressures
6. Country-specific trade barriers and trade preference agreements
a. US Agreements
6.1.1 Haiti
6.1.2 Low-income Africa
6.1.3 Higher income Africa
6.1.4 Andean Countries
6.1.5 Caribbean countries
6.1.6 Central America
6.1.7 Free Trade Agreements
6.1.9 Israel
6.1.10 Jordan and Egypt
6.1.11 Mexico and Canada
6.1.12 Other developing countries
b. EU Agreements
6.2.1 Countries with unrestricted duty free access
6.2.2 Other poor country duty free access
6.2.3 EU members
6.2.4 EU’s rich neighbours
6.2.5 Euromed Countries
6.2.7 Other developing countries
6.2.8 Duty free for other developing countries
6.2.9 Individual Free Trade Agreements
6.2.10 Korea
6 .3 Japan
6.3.1 LDC Rate
6.3.2 ASEAN Rate
6.3.3.Japan-India
6.4 Canada
6.4.1 LDCs
5.4.2 Free Trade Agreements
6.5 Australia
5.5.1 LDC Rate
5.5.2 ASEAN rate
6.6 Summary of top hundred exporting countries
Appendix 1. Tariff and Preference Summaries
Tariff sources
Appendix 2: Memberships
Memberships 1: World Trade Organisation
Memberships 2: Trading blocs
EU
Association of South East Asian Nations (ASEAN)
Mercosur
Memberships 3: Generalised System of Preferences
Appendix 2: EU Rules of Origin
Chapter 61
Chapter 62
Appendix 3: Rules allowing discrimination against China
Tables
Table 1 Countries covered
Table 2 Current best deals
Table 3 Exporting countries with significant concessions
Table 4 Countries with origin-blind duty-free access to US
Table 5 Countries with restricted duty-free access to US
Table 6 Countries with other concessions for US access
Table 7 Countries with unrestricted duty free access to EU
Table 8 Countries with restricted duty free access to EU
Table 9 Duty rates and programmes for each producer country
Table 10 Likely new arrangements 2013-2015
Table 11 HELP, HOPE, and CPTDEA
Table 12 America’s AGOA: Full Beneficiaries of the African Growth and Opportunity Act
Table 13 America’s AGOA: African Growth and Opportunity Act Partial
Table 14 America’s ATPDEA (Andean Trade Promotion and Drug Eradication Act)
Table 15 America’s CBTPA: Caribbean Basin Trade Partnership Act
Table 16 America’s DR-CAFTA: Central America/Dominican Republic FTA
Table 17 US Free Trade Agreements ratified as of September 30, 2012
Table 18 US-Israel Free Trade Agreement
Table 19 America’s QIZ Programme: Qualified Investment Zone facilities in Jordan and Egypt
Table 20 NAFTA: North American Free Trade Area
Table 21 US and the General System of Preference (GSP)
Table 22 EU Economic Partnership Agreements
Table 23 Full EU membership
Table 24 European Free Trade Area
Table 25 Euromed
Table 26 The EU and the General System of Preference (GSP)
Table 27 The EU’s GSP+ programme
Table 28 EU- Chile Agreement
Table 29 EU-Mexico Agreement
Table 30 EU-South Africa agreement
Table 31 EU and Korea
Table 32 EU and Colombia
Table 33 Japan-LDC rates
Table 34 Japan-ASEAN rates
Table 35 Japan- India FTA
Table 36 Canada-LDC rates
Table 37 Canada FTAs
Table 38 Australia-LDC rates
Table 39 Australia-ASEAN rates
Table 40 Top hundred exporting countries: concession summary
Table 41 Sources of national tariffs
Table 42 Countries in the WTO
Table 43 EU Members: January 1 2013
Table 44 ASEAN members
Table 45 Mercosur members
Table 46 Countries qualifying for garment GSP/GPT rates: 2012 and 2014
Related research categories
By sector: Apparel and clothing, Trade and sourcing
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